Invest Like the Best with Patrick O'Shaughnessy Geoffrey Batt – The Nature of Transformational Returns - [Invest Like the Best, EP.128]
Apr 9, 2019
Geoffrey Batt runs a significant capital pool in Iraqi stocks through his firm Euphrates, specializing in contrarian investments. He shares insights on earning transformational returns in volatile markets, emphasizing the importance of long-term vision and stable investor bases. Geoffrey recounts his journey exploring Iraq’s equity market and memorable meetings with local companies. He also discusses the revival of Baghdad Softdrinks, illustrating the resilience and emerging opportunities within Iraq’s evolving economy despite its challenges.
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Patience and Volatility in Transformational Returns
- Transformational returns require significant patience, often taking 10-15 years to materialize.
- These periods involve high volatility and potential setbacks, testing investors' conviction.
Choosing LPs for Volatile Markets
- Seek out high-net-worth individuals and family offices as LPs for volatile investments.
- These investors offer greater stability, agency, and a contrarian mindset, crucial for long-term success.
Adjacency Risk for LPs
- LPs should consider adjacency risk, the potential impact of other investors' actions on their investment.
- The withdrawal of a large LP can destabilize a fund, impacting all investors.